Wall Street is lending cash against stock that cannot be sold.
JPMorgan’s private-bank loan demand jumped tenfold in months. Goldman’s San Francisco loan balances are up 50% since 2023. Banks are writing share-pledge loans against pre-IPO AI paper, some as small as $150 million.
That is leverage stacked on valuations nobody can mark. 2021-vintage startups traded at a 68% discount last year. The last founder to pledge pre-IPO stock this eagerly was Adam Neumann in 2019, right before WeWork cratered.
When banks chase paper this hard to win the next IPO mandate, you are late in the cycle.
Wall Street is lending cash against stock that cannot be sold.
JPMorgan's private-bank loan demand jumped tenfold in months. Goldman's San Francisco loan balances are up 50% since 2023. Banks are writing share-pledge loans against pre-IPO AI paper, some as small as $150 million.… pic.twitter.com/PtrzjBgVy1
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) August 2, 2026
The NYT ran a piece yesterday asking whether Ellison will end up the face of the AI bubble. Forget the framing, the numbers underneath are wilder than the headline.
Oracle burned $55.7 billion in capex last fiscal year, more than double the year before, nearly all for AI data centers. They’re carrying over $124 billion in long-term debt now and free cash flow hit negative $23.7 billion. S&P downgraded them.
Ellison personally pledged 346 million shares as collateral on loans. Those shares were worth about $107 billion when he disclosed it last September. At today’s price they’re closer to $40 billion. The board says these are term loans, not margin accounts, and he can repay without selling. Fine.
Same week: Nasdaq 100 in correction. The chip index entered a bear market, down 25% from June. The AI hedge fund Situational Awareness lost 67% in July and fire-sold its book to Citadel. Apple, which barely spent on AI infra, briefly crossed $5 trillion.
Oracle’s cloud backlog did hit $638 billion, a record, so these aren’t unfunded dreams. If that converts, the spending was rational. But one person’s fortune and one company’s solvency sitting on the same bet just makes the concentration the story by default.